Philips cuts holding in Philips Lighting with $600 million share sale

(Reuters) - Dutch healthcare technology company Philips (PHG.AS) said on Tuesday it was selling a stake of about 12 percent in Philips Lighting (LIGHT.AS).

Philips wants to eventually sell its entire holding in Philips Lighting, which it spun off in May, 2016, with a view to concentrating on medical devices and other healthcare products.

Following the latest share sale via an accelerated bookbuilding offer and the cancellation of 2.8 million shares to be repurchased by Philips Lighting as part of the transaction, Philips’ remaining stake in the lighting business would be 29.59 percent, the company said.

Philips intends to sell around 17.1 million shares, which would be worth over 560 million euros ($665 million) based on Tuesday’s closing price, with the sale expected to be completed on Friday.

Shares in Philips Lighting closed up 2 percent at 32.975 euros on Tuesday, taking the rise this year to over 40 percent.